North Korea talks break down again!

Just as other press releases inform us the bank issue is solved this happens. I am not surprised at all. In fact in an earlier post I had predicted that US actions on the bank might very well cause problems. This article is not very useful in that it does not give details or even try to find out North Korea's reasons. However, the US decided to ban all US banks from dealing with the Macau bank and accuses it of money laundering etc. The money released is probably only a partial release of what the US might term "clean" money but this is hardly what North Korea expected. At the time of the US decision it was clear that China for one was very displeased with the US action. It knew what might happen. Of course things could very well be patched up so we will just have to watch but given the Bush administration's penchant to demonise North Korea and opposition to the deal among some in the administration things could fall apart completely. However, maybe the Bush administration has enough problems on its plate so that it will keep this issue on the back burner.

N. Korea departs nuclear talks after Macau bank row
Last Updated: Thursday, March 22, 2007 | 5:59 AM ET
CBC News
North Korea's chief nuclear envoy flew home from Beijing Thursday after disarmament talks broke down.

Kim Kye Gwan refused to participate in the six-party talks that had dragged on this week with little success, apparently dissatisfied with a deal to transfer about $25 million of North Korean funds frozen in a Macau bank.

North Korea has refused to take part in the talks aimed at pushing forward a Feb.13 agreement to dismantle its nuclear facilities before the issue of the Macau funds is resolved. The U.S. said on Monday that the North Korean money would be transferred from the Macau bank to a bank in China following money-laundering investigations.

The transfer did not happen quickly enough for Kim, who departed without discussing the next steps in disarmament, leaving the remaining five nations frustrated with the lack of progress.

Kim waved to reporters when he arrived at the Beijing airport but did not comment.

Under the February disarmament deal, Pyongyang agreed to start shutting down its nuclear facilities in exchange for energy aid.

The six-party negotiations between North Korea, South Korea, the U.S., China, Japan and Russia began Monday in Beijing and were to end on Wednesday. But the talks dragged on until Thursday at the insistence of North Korea to discuss the issue of the money held in Macau.

With files from the Associated Press